Wayfair Earnings: What To Look For

Jabin Bastian /
2022/02/23 6:59 am EST
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Online home goods retailer Wayfair (NYSE: W) will be reporting earnings tomorrow before market open. Here's what to look for.

Last quarter Wayfair reported revenues of $3.12 billion, down 18.7% year on year, missing analyst expectations by 3.76%. It was a weak quarter for the company, with a slow revenue growth and a miss of the top line analyst estimates. The company reported 29.2 million active buyers, up 1.38% year on year.

Is Wayfair buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wayfair's revenue to decline 10.7% year on year to $3.27 billion, a significant deceleration from the 44.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.70 per share.

Wayfair Total Revenue

The company missed Wall St's revenue estimates three times over the last two years.

Looking at Wayfair's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Angi (NASDAQ:ANGI) delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.12% and Overstock (NASDAQ:OSTK) delivered top-line growth of 10.4% year on year, missing analyst estimates by 4.86%. Angi traded down 9.9% on results. Read our full analysis of Angi's results here and Overstock's results here.

There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.11% over the last month. Wayfair is down 16.7% during the same time, and is heading into the earnings with analyst price target of $240, compared to share price of $124.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.